Tarion and the Home Construction Regulatory Authority have developed an Addendum form for different types of new home purchases which among other things:
- Provides advice and cautions to the purchaser about rights and obligation under the New Home Warranties and Protection Plan;
- Has a Statement of Critical dates that clarifies when the home is expected to be ready for occupancy;
- Limits the vendor’s use of Early Termination Conditions in the purchase agreement;
- Discloses information about the status of development approvals and the status of construction so the purchaser can better assess the risk that a delay may occur;
- Has restrictions and processes for any delays that may occur;
- Provides for compensation to purchasers where a delay occurs in excess of permitted delay;
- Sets an Outside Occupancy Date beyond which the purchaser has a right to terminate the transaction; and
- Has summary sheets for closing costs and adjustments.
It is the vendor’s obligation to ensure that every agreement of purchase and sale for a new home has the appropriate Addendum attached to it in accordance with the requirements set out in Regulations 892 and 165/08 to the Ontario New Home Warranties Plan Act.
New forms for purchase agreements signed on or after February 1, 2021
New Addenda forms were approved as part of the recent changes to Regulation 165/08. Any purchase agreement signed on or after February 1, 2021 must use the new October 7,2020 forms.
The October 7, 2020 forms referred to in Regulation 165/08 as amended are found here:
- The source document shall be in the forms supplied by Tarion on its website - tarion.com.
- The vendor/user shall not amend or alter the format, logos or text of the Addendum, other than filling in blanks or fields, checkmarks, dates, addresses, names or other text or additions contemplated by such blanks or fields with accurate information.
- The Addendum is to be retained as a separately identifiable document. The Addendum shall be attached to, and forms part of, the agreement of purchase and sale. For example, the Addendum cannot be split up nor can provisions be distributed in other parts of the agreement of purchase and sale.
- Except as noted in paragraphs 2 and 3 above, the vendor/user shall not modify or amend the Addendum in any way and shall not create any derivative works that incorporate or make use of the Addendum, in whole or in part, without the express prior written consent of Tarion.
- The vendor/user shall be responsible for any improper changes whatsoever made to the Addendum and the accuracy and sufficiency of the information inserted in the Addendum.
- The Addendum template may be changed from time to time by Tarion, and Tarion’s sole obligation to advise the vendor/user is to send an advisory to the new home building industry and post the new forms on its website at least 30 days prior to introduction of a new template.
For more information, please see the following Registrar Bulletins: